DBRS Downgrades Two Classes of Merrill Lynch Mortgage Trust 2005-CIP1

DBRS has today downgraded the following classes of the Merrill Lynch Mortgage Trust 2005-CIP1 as follows:

-- Class M to D (sf) from C (sf)
-- Class N to D (sf) from C (sf)

The downgrades follow realized losses to the above mentioned classes, which resulted from the liquidation of two loans in addition to further liquidation expenses associated with a loan that liquidated with the October 2011 remittance.

Courtyard Marriott Parsippany (Prospectus ID#29) was secured by a 151-room full-service hotel located in the Parsippany-Troy Hills area of New Jersey. The loan was transferred to special servicing in December 2010 for payment default, after having been on the servicer’s watchlist for a low DSCR. The note was sold on October 28, 2011, which resulted in a $9.0 million loss to the trust, realized with the November 2011 remittance.

Coco Center (Prospectus ID#65) was secured by a mixed-use property in Margate, Florida. The loan had previously been on the servicer’s watchlist because the largest tenant’s lease was scheduled to expire on December 31, 2010. The loan was transferred to special servicing shortly after in February 2011 for imminent default, and the note was sold on October 14, 2011, which resulted in a loss of $2.9 million with the November 2011 remittance.

Additional liquidation expenses related to a loan that was liquidated in October 2011, Village Park at Brookhaven (Prospectus ID#118), were passed through the trust with the November 2011 remittance.

The cumulative losses for this transaction, to date, have resulted in the full principal losses to Classes Q, P and N and have reduced the balance of Class M to $1.9 million.

Since the last DBRS annual surveillance review in January 2011, five loans have been transferred to special servicing: Park Forest (Prospectus ID#113), Sunrise Plaza (Prospectus ID#89), Hampton Inn Newton (Prospectus ID#35), Hampton Inn Great Valley (Prospectus ID#58) and Kirkwood Bend Office (Prospectus ID#30). These loans cumulatively comprise 2.74% of the pool balance, as of the November 2011 remittance. DBRS continues to monitor this transaction on a monthly basis, with increased focus on these pivotal loans and the other loans currently in special servicing.

DBRS expects to complete a full annual surveillance review of this transaction in the coming months.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodologies are CMBS Rating Methodology and CMBS North American Surveillance Methodology, which can be found on our website under Methodologies.